An Ultimate Guide On Geofencing Marketing
Boost Your Digital Marketing Strategy with Geofencing Magic!
Want to connect with a local audience, a geofencing marketing is a way to go. Get local clients the moment they enter your store or your target physical location zone and hit the bull’s eye for lead generation.
Imagine your client is walking in a nearby outlet or a mall, and right away when they set foot on the place, their smartphones vibrates with a popup with special offers like a discount or coupon. This situation may motivate them to visit the store, get to know more about the promo or the discount and use a coupon.
A geofencing marketing is an advanced method of digital marketing that converts your visitors into buyers right away but execution of it is a bit challenging. So, this blog will talk about the What is geofencing is actually is, how it works, what are it techniques and much more,
Let’s begin!
Table of Contents
What Is Geofencing Marketing? And How It Works?
Geofencing marketing is a location-based advertising that uses the GPS and RFID tech to locate a perimeter or a zone with in the real world scenario. As every person has a smartphone with them. This means the GPS and RFIDs are integrated within their devices. This gives marketers a heavy opportunity to track them where they are.
So, once a target audience enter the place or zone which marketers has set up via a virtual geographical boundary or ‘geofenc’ such as outlets, malls or even a specific event, or even a conference, clients gate a notification or a message alert local shoppers of a great deal nearby or a can advertise the day’s special to passersby.
Let us explain you with a geofencing marketing example, a SME has a sale to offer like any kind of weekly discount via a promo code or voucher, and a marketers want to aware of this deal to potential customers, they could make an automated text note for when that clients enters the geofence.
Or in case there is a particular event that appeals target customers, a marketer can set up a geofence nearby that occasion and the moment clients or the target attendees enter the zone, they can get a push notification or a text messages regarding your ads.
You can also do your PPC campaign with geofencing as Google Ads offers location targeting alike to geofencing or a ‘geofencing marketing Google ads’. When your clients enter the nearby zone, the clients will search for your target keywords as an example ‘best desi restaurants’, your ad will appear to them right away but if your biding amount is less that the rival, then your ad won’t appear.
Geolocation Vs Geofencing Vs Geotargeting
The full three letters similarity doesn’t make them the synonyms. But they are linked with each other. Geolocation is a term given for tracking a device’s location via Wi-Fi access points, cell phone towers, GPS, or a mixture of these. As most people carries devices like tablets and smartphones, geolocation trace the location and movements and of humans for surveillance.
Whereas geofencing is an advanced version of a geolocation where marketers can have denied all those outside of the geofenced area by specifying its longitude and latitude and adjust the proximity for the location with a radius.
While geotargeting is a procedure to customize the ad a client gets on their smartphones of using the user’s current location and the other relevant data like the preferences and past shopping behavior. Geotargeting is a smart strategy a better than geo fencing because users’ needs to fulfil a detail criterion such rather than where the user is, but also analyses of who they are and what they might be interested in.
For instance, if a user is standing or walking near a clothing store, they can view ads for products that match their past shopping behaviors or preferences, rather than just generic promotions with geotargeting.
If you want to really work on your digital marketing campaign, then geofencing marketing must not be overlooked. Get in touch with IT Verticals to build a geofencing marketing strategy that increase visitors, sale, and leads all at the same time.
Advantages of geofencing marketing
Help with Local Marketing
Folks show more interest being social than sitting on their homes. This says that it is important to divert their attention as they pass by stores. As per research, one-fourth of clients are more interested to stroll around their town as compared to an earlier time. Even most feels happing visiting outdoor stores. So, best geofencing marketing help with local marketing a lot.
As well, when a person is driving by car for visit, location-based marketing is still useful as QSR magazine performs a test to find out location based advertisements usefulness.
It is also explored that when a people drive a car to buy breakfast items, the stores sees a 20% improvement in-store visits while 26% in-visit improvement during morning times.
Personalize customer’s experiences
geofencing marketing helps marketers to leverage the gathered data of a target audience and build the marketing campaign according to it. You will have a detailed insights regarding your local population demographics like their preference and past behaviors. You can use this consumer’s info and mold your messaging style in a way that appeal to them.
As an example, you discover that this product is most acclaimed by generation X, you can customize your message to that particular audience and make geofencing marketing strategy according to their frame of mind.
Boost Brand Awareness
As an instance that when you walk nearby a Starbucks stores and right away a client get message of a discount coupon make the client’s curious to avail those discount facilities.
This Starbucks could be any brand like yours reminding the clients that it exists for you and let them aware them about your brand existence ready to serve the clients. This way a geofencing marketing in turn increasing brand awareness. This real-time interaction not only drives curiosity but also creates a sense of urgency for customers to act on the discount.
By engaging clients at the right moment, geofencing boosts foot traffic and builds stronger brand connections.
Geofencing Marketing Real-Life Examples
Nowadays, geofencing are more like a conventional thing for businesses with passing year. Across multiple industries businesses are using it to their gain. Take a glimpse at real-life geofencing marketing examples that really work on it to get leads.
Starbucks
Starbucks markets its drinks to intended client’s via geofencing marketing tactic. A visitor all times get a push notification when nearby or enters the Starbucks store. A huge example is of the happy hour special happened in 2-7 p.m. on Thursday delivers BOGO amount on a large drink or Grande. On this happy hour special, the moment users enter the zone, receive a special push notification to aware of the big Starbucks deal offerings. Also, Starbucks sends personalized app notifications.
Dunkin
Dunkin also applies the same tactic when the users enter geofence gets a push notification of exclusive deals and drinks. Also, in order to allure people into purchase stage, Dunkin uses a Snapchat filter. Dunkin uses a big sprinkle donut filter on National Donut day to attract audience to enter the store. When a visitor is on the geofence area or nearby and open a snapchat they can access to this filter.
Uber
Ubers is entirely a business of geofencing marketing letting drivers to make fares. Around nightclubs hotels and airports, uses geofencing to make fences. The time a user’s get off a plane and exit he nightclub or hotels they can such notification knowing that there are many Uber drivers waiting to give the service to take them to their desired location to earn more fares.
Best Practices On How To Build Solid Geofencing Marketing Strategy
geofencing doesn’t belongs to only large businesses, the SMEs can also work on it to their benefit. Here are some of the useful practices on how create a strong geofencing marketing strategies for brand awareness and recognition as well as increase the integrity of your company among the local client’s.
Set Goals
Before move on, you goal must be ready, well-defined and clear. You geofencing marketing campaigns won’t be successful in case your goals are not defined or blurred. The more specifics you can be and narrow down your target audience, the easier it will for you to decide which metric to track in your geofencing marketing campaigns. Go for a SMART goals approach to set precise, measurable, attainable, relevant, and time-bound (SMART) goals. For instance, one of your goal is to increase your sales by up to 25% before the year ends as compared to last quarters or you wish to enhance user interaction with your mobile app through geofencing notifications or to increase the number of customers who visit your store after receiving a geofenced promotion to capture more leads.
Understand Your Audience
Audience are like a tires of the automobile in the marketing domain. You can’t imagine to drive or even manufacture a car without a tires. In a similar manner, you can’t propel your any of the marketing efforts forward without understanding your audience.
Always have a solid buyer persona. Know your audience demographics factors such their cultures and backgrounds, financial strength as well understand their psychological factors such as their attitudes, values, shopping behaviors, personality, hobbies, personal interests and beliefs. Also, learn why they like your brand.
Once you set your solid buyer persona, you can create compelling copy and advertisements publics will answer back to for your geofencing marketing campaign.
Discover the Accurate Size for Your Geofence
A smaller audience is less expensive as compared to larger ones and even better ones. In case your geofence contains a 24-miles radius from your outlet then you are investing cash on faraway clients who have less chances that they pop by.
So instead of large geofence, we suggest build multiple small perimeters in your geofencing marketing. and the perimeters must have topped out at about a 10 to five-minute walking distance from your outlet or store. You don’t mess around only your store’s perimeter, however in some situations, you also set up geofences at occasions.
For example, if your business has a stall at a music festival at a crofter’s market, you can send out messages allowing individuals know you’re there.
Pick The Precise Site for Your Geofences
The right place in your geofencing marketing is important. Imagine you are fencing those areas where your target isn’t existing or comes very less often. Will it work? No it works and you miss the chins to get qualified leads.
So, when you make your fences, put them on those areas where they can most impact, find out where your target audience consumes more time s before vesting to your business. It can be a specific block in the city like shipping mall or a nightclub or a hotel etc. then set up your geofence where your client’s most often come and spent time most.
Taking an example, an apparel business can find out that most visitors Starbucks prior arriving to their company. Ultimately, the company can set up their geofence near the Starbucks stores to display ads to possible clients waiting of the cappuccino. You’ll come up with a more effective geofencing marketing strategy by picking the true location.
Craft Your Messaging - Add a CTA
A call to action (CTA) helps the audience in determining their next course of action in your geofencing marketing. We advise that you develop call-to-actions (CTAs) that right away communicate the expected outcomes of the action.
For example, a call-to-action (CTA) that states, “Visit the store for a flat 50% discount,” gives clarity to the audience regarding the outcome of a visit to your business.
In the same manner, call-to-actions (CTAs) such as “Download the App” or “Order Online” do not appear to be persuasive as it too generic.
Target Yours Ads On a Necessary Moment
Timing is one of the most serious geofencing marketing best practices. So don’t bombard individuals with loads of advertisements on a continuous basis. For instance, advertisements that are broadcast during late hours, such as 11 p.m. to 6 a.m., won’t perform well due to the majority of people are asleep during this time.
But, if you operate a nighttime business, such as a bar, then this time is best and you will experience greater success but for a business like beverage retailing company, you won’t get success in targeting daylight hours. Also, try to show advertisements during business hours.
For instance, if you wish to increase the number of leads that visit your franchise store, which is open until 6 p.m., refrain from displaying advertisements until 8 p.m. geofencing advertisements ought to be useful when your target audience is capable of visiting your establishment.
Optimize Your Campaign
No marketing campaign is perfect as with time it gets outdated and same for geofencing. You should optimize your geofencing marketing campaign with time to time considering all the new trends and competitor analyses. Numerous organizations commit the error of installing their fences but then don’t check later to see how well they’re working.
So when you fail to optimize your geofencing marketing strategies, you are missing opportunities to capture more sales and reach more prospects, but losing revenue. Monitor the usefulness of your geofencing marketing campaign and review the analytics through KPIs and metrics. This enables you to identify the aspects of your business that are effective ones.
You will get an understanding of the areas where you can improve, whether it be the ad copy or the placement of the fence. Also, conduct A/B testing to determine which elements you can make better, using your geofencing analytics. Thus, you can develop a more operative geofencing campaign for expected results.
Tracking The Success Of Your Geofencing Marketing Campaigns
You can find out the efficacy of your geotargeted marketing campaigns when you monitor relevant KPIs and metrics. The good news is nowadays new marketing technologies are taking life allowing marketers to gather data for their geofencing marketing campaigns easily and deeply.
The following are a few metrics you can think of:
- Ad Impressions or Views: The quantity of times your advertisement viewers see your ad.
- Cost per 1000 impressions (CPM): The fee you pay for every 1000 impressions.
- Conversion Zone Visits: The quantity of visitors who visited your store or a specific location after viewing your advertisement.
- Click-Through Rate (CTR): The ratio of the number of views that your advertisement gets to the number of impressions.
- Cost Per hit (CPC): It is calculated when you divide your ads entire cost by the number of clicks your ads get.
- Cost Per Action (Walk-In, Phone Call, Sale): The amount you pay when a user takes a particular action (purchase or registration) on your advertisement on app or website.
- Walk-In Rate or Retail Rate: The percentage of users who visit your physical store after passing by on a street.
- Cost Per Visit: Total number of visits to your store divided by the cost of your marketing efforts.
You can adjust the advertisements in accordance with your outcomes. You can change your ad copy or promos in case passersby are not responding to your push notifications.
Geo Fencing Marketing Cost
The geofencing marketing cost is liable upon factors, such as the number and size of geofences, tools, and ad platforms. Businesses allocate $1,500 to over $32,000 per month for geofencing advertising. T the platform you select impacts the price.
For instance, the incorporation of geofencing into pay-per-click (PPC) or social media campaigns does not require additional fees. However, bid prices can increase in certain regions due to high competition. Also, Snapchat and other similar apps demand a fee of about $5 per 20,000 square feet for the development of personalized filters. The number and size of geofences, as well as the tools you use, are also a factors that influence geofencing marketing cost.
GroundTruth and Koupon Media are geofencing marketing tools that assist in campaign management; however, they incur extra expenses. In the same way, your expenses will rise as a result of targeting multiple locations or extending your geofence radius. You can guarantee that your advertising endeavors are gainful, you should maintain a balance between the size and quantity of geofences for a better return on investment (ROI).
Geofencing Marketing Ethical Considerations
Privacy is the main ethical concern regarding location-based advertisements.
The protection of consumer data must be considered using laws such as the General Data Protection Regulation (GDPR) in the EU and the California Consumer Privacy Act (CCPA).
Digital privacy regulations have been implemented in over 80 countries, and more legislation is under consideration for the years ahead.
Although the majority of location-based advertising technologies generate anonymized data, location data remains personal information. Furthermore, an individual’s browsing data and search history must be kept confidential.
Businesses can safeguard themselves and their consumers while at the same time applying geofencing by adhering to the consumer rights policies of the GDPR and CCPA covers the following:
- If they ask, you need to share the data being collected.
- Consumers can ask what information is being collected and why.
- You can only use the information for the reasons you’ve explained.
- People can choose to opt out of this data collection.
FAQ's
Geofencing technology enables businesses by establishing virtual boundaries to target their most qualified audience. Ads or text notifications for a particular business are activated when target customers enter that boundary, thereby encouraging potential customers to visit a storefront.
It is expected that the geofencing market will expand, as businesses have opportunities to target clients by customizing and distributing notifications and advertisements in real-time. The demand for geofencing has risen up by the coronavirus outbreak.
First, geofencing can be inaccurate, particularly when the GPS signal is weak. This result in false alarms or missing alerts. Second, geofencing can reduce battery life, as the GPS must remain operational at all times. Third, geofencing has the potential to violate privacy by monitoring an individual's location.
geofencing is one of the most operative digital marketing strategies for attracting consumers to a physical location. geofencing can also be useful to redirect potential customers of a competitor and convert them into customers.
Conclusion
You can target individuals who are interested in your products or services via geofencing marketing. This procedure provides you with the opportunity to compose persuasive advertising copy that generates a high number of leads for your business. Reading this blog familiar you with how to implement geofencing, you can now begin using it to enhance your return on investment.
At IT Verticals, our team of digital marketing experts is keen to support you in the development of ad campaigns that are results-oriented and generate an increased number of leads for your organization. Contact us or call us today to speak with a strategist about how we can help you in establishing geofencing.
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